Did Condo Prices Drop on Seattle’s Eastside in August, 2012?
First, a word about condo prices on Seattle's eastside:
Even though the news media said condo prices were down in King County, they appear to be holding steady in the Seattle's eastside cities of Bellevue, Redmond, Kirkland, etc, when compared to August 2011 pricing. This is good news for condo sellers who have gotten beaten up by pricing in the last few years. With the low supply of condos for sale, prices are no longer declining, and, in fact, they may begin rising. In June, July, and August, prices on the eastside did increase, which brought us back to the pricing in the middle of last year. Unfortunately, prices did drop last fall through the early spring of this year, but we have now caught up to the prices we had in mid-2011. It appears that market pricing is holding steady now and has increased in the last few months.
Now back to the number of sales:
Condo sales numbers are actually not much higher than August, 2011 when 194 condos sold. This year, 201 condos sold in August. Because there's about half the number of condos for sale this year than in 2011, the percentage of those that sold, the absorption rate, skyrocketed. Last year, 19% of the condos sold and this year, 43% sold.
Time on the market has also dropped to an average of 68 days to sell vs.116 days in August of 2011.
So what does this all mean if you are thinking of selling or have your condo on the market?
If your condo takes a long time to sell, then it is either overpriced or is not marketed well. Make sure your condo has great online photos to start. Staging can also be a big plus. Good pricing and great photos are the two most critical marketing pieces to getting your condo sold. Remember this is how buyers and other agents "see" your home first, so the pricing and online marketing are crucial to getting buyers through the door to actually see your condo and make an offer to buy it.
What does this all mean if you are a condo buyer?
With the pattern of price increases, this means we're past the bottom of the market pricing. This may be the time to make a purchase. With the short supply, pricing could continue to increase. Remember, too, that interest rates are still incredibly low. Don't forget to check the financial viablity of an condo association you're thinking of buying into. In a blog post I wrote a few months ago, I listed some of the important things to look for when checking condos out. The post looks at the issue from the seller's point of view, but these issues should be important to any buyer. Fortunately for the buyer, the law requires a seller to provide the answers in the form of a resale certificate which is reviewed as one of the conditions of an offer.
If you have any questions about the condo market, please feel free to contact us.
The Seattle-Eastside Condo Market is Amazing!
Our amazing Seattle-Eastside real estate continues! How low can the supply of eastside condos go? In July there were only 463 condos for sale all over the Eastside, less than half the number of condos for sale in July of 2011! The supply is low and the prices have dropped considerably over the last few years as evidenced by the chart below. These market conditions bode well for buyers. Prices are at the bottom and with the low supply, they should begin rising. Unfortunately for the sellers who bought from 2007 on, it's still a tough market as pricing is well below the high experienced during that time.
Not only was the supply at the lowest I can remember, the number of sales were at the high so far for the year. There were 463 condos for sale and 236 of them sold! I've been in real estate on Seattle's eastside for 25 years and I've never seen anything like the lack of supply in the market we're experiencing now. In previous reports I mentioned if the supply of condos stayed on the low side, to expect the positive market to continue in Bellevue, Kirkland, Redmond, and the other cities east of Seattle. This was how the real estate market performed in July.
The chart beow shows the trend in pricing from 2008-2012 for condo sales on the eastside. Each blue bar represents a month during the years that are represented below. The red line that is drawn across each year shows where the median point is in pricing for the year.In 2008, the median pricing for condo sales on the eastside was $337,064. So far this year, the median pricing for sales is at $221,631. If you look at 2012, pricing has jumped up for the last two months, but on average, it's still lower than previous years.
Time on the market has also dropped to an average of 90 days to sell vs.109 days in June of 2011.
If you have any questions about the condo market, please feel free to contact us.
Were June Condo Sales on Seattle’s Eastside Still Hot?
What an amazing condo market on Seattle's Eastside! Since June of 2011, the number of condos for sale has continued to drop, and drop by alot. Last June there were 1139 condos for sale and this June there are less than 500! What a huge difference!
Not only are there fewer condos for sale, but the sales have been very strong, especially since February. The condo market has been even stronger over the past two months. Approximately 42% of the available condos sold in June. If the supply of condos stays on the low side, expect this positive market to continue in Bellevue, Kirkland, Redmond, and the other cities east of Seattle.
Median pricing was $235,000 this past month, whereas last year the median pricing for the month stood at $250,000. Don't worry too much about pricing for one month's worth of sales. As we always say, you must follow the trend over a period of months to measure any true increases or decreases in value. One month's real estate prices are only a reflection of the sales that happened that particular month.
Time on the market has also dropped to an average of 90 days to sell vs. 118 days in June of 2011.
So get our there and find a great home, but do your homework before getting in the car to look at properties. Check out the commute, the neighborhood, schools and anything else that is of importance to you before you start looking for a home. If you do that, you can target the right location to look for a home. You can then look for a home that works for you in a the right location.
Remember location, location, location is the primary rule of real estate. In today's world, location can mean many different things to people based on job location, commutes, and area amenities. Determine what it means to you and then go for the condos in that particular location.
If you have any questions about the condo market, please feel free to contact us.
Has a Positive Trend Started in Seattle-Eastside Real Estate?
The positive trend in Seattle’s eastside real estate continued from December, 2010 to January’s sales. Maybe the uptick in December was not an anomaly? We’ll still need to wait and see.
This, again, is what the Seattle Times said after December’s home sales numbers were released:
• Buyers are climbing off the fence, even if they suspect prices will continue slipping, because they fear interest rates will rise and wipe out any savings.
There was a lot more “climbing off the fence” in January. Truthfully, the number of sales hasn’t increased all that much, but the number of homes the buyers have to choose from is a lot less. It’s that old law of supply and demand, which is what we call the absorption rate.*
There are fewer homes to choose from, so the good ones are grabbed up. That’s what feels different. The “fence sitters’ are jumping on the good home buys. Some homes that hit the market are gone in a matter of days. The homes that are priced right and show well are the homes that sell quickly.
Since the last two months have had stronger absorption rates, I hesitate to call it a trend just yet, but I’ll keep you posted. I can tell you that the number of buyers looking at homes, multiple offers (gasp), and the absorption rate (see below) have all increased since the first of the year.
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The odds of selling a home on the Eastside in January ranged from 18% to 28%, with an average 19.5% absorption rate.* Most home sellers on Seattle’s eastside had a 19/100 chance of selling their home last month.
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*(The absorption rate is the number of homes for sale in any given month divided by the actual number of homes sold that month. If the absorption rate is 10%, then 10 out of the 100 homes for sale sold that month.)
January, 2011 2392 homes for sale 467 homes sold 19% odds of selling.
December, 2010 2499 homes for sale 369 (was 397) homes sold 15% (was 16%) odds of selling.**
January, 2010 2588 homes for sale 460 homes sold 18% odds of selling.
**(Some home sales fail because of the buyer financing or an inspection. The number of sales is updated when we find out the actual number of homes that sold during that time.)
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January, 2011 Seattle-Eastside real estate market compared to January, 2010:
- The average price of pending homes (recently sold homes) went from $525,462 to $495,080, a 6% decrease in pricing.
- On 2-14-11, there were 10,530 King County homes (houses and condos) for sale.
- The number of homes sold on Seattle’s Eastside: down 11% from last year.
- Number of homes for sale on Seattle’s Eastside: The number of homes for sale in January, 2011 was 7% less than January, 2010.
Best odds of selling: East Bellevue/Redmond around Microsoft.
Worst odds of selling: Sammamish/Issaquah/North Bend/ Fall City.
Decline in home sales from last year: Three out of the 7 Seattle-eastside areas had fewer sales, South Bellevue, Kirkland, and Sammamish/Issaquah/North Bend/ Fall City.
What’s happening with real estate in your neighborhood?
December, 2010, A Surprise in the Seattle Eastside Real Estate Market
How did Seattle’s eastside end its year in real estate? Surprising to some, there was a huge increase in the number of homes sold in some areas when compared to last year. Pending sales for the year on the eastside were up by 10%. Only a few of the eastside neighborhoods had home sales which were down from last year.
Several theories were proposed in The Seattle Times wrap up on December real estate:
• The market finally has worked its way through the lull it fell into after the tax credits’ expiration.
• Buyers are climbing off the fence, even if they suspect prices will continue slipping, because they fear interest rates will rise and wipe out any savings.
• There may have been a push to get some long-languishing short sales — sales for less than sellers owe lenders — closed before year-end.
Is this a trend that will continue into the New Year? It’s probably too early to say, but I’ll be watching over the next couple of months to see how 2011 real estate performs on the eastside. Do you think this will be the start of a change in local area real estate?
The odds of selling a home on the Eastside in November ranged from 12% to 20%, with an average 16% absorption rate.* Most home sellers on Seattle’s eastside had a 16/100 chance of selling their home last month.
*(The absorption rate is the number of homes for sale in any given month divided by the actual number of homes sold that month. If the absorption rate is 10%, then 10 out of the 100 homes for sale sold that month.)
December, 2010 2499 homes for sale 397 homes sold 16% odds of selling.
November, 2010 2818 homes for sale 455 (was 485) homes sold 16%(was 17%) odds of selling.*
December, 2009 2584 homes for sale 343 homes sold 13% odds of selling.
*(Some home sales fail because of the buyer financing or an inspection. The number of sales is updated when we find out the actual number of homes that sold during that time.)
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December, 2009 Seattle-Eastside real estate market compared to December, 2010:
- The average price of pending homes (recently sold homes) went from $536,205 to $513,009.
- On 12-27-10, there were 11,015 King County homes (houses and condos) for sale. There were approximately 4000 less homes for sale, 32% less, in King County now than in July.
- The number of homes sold on Seattle’s Eastside: down .7% from last year. The sales were almost the same as December, 2009.
- Number of homes for sale on Seattle’s Eastside: The number of homes for sale in December, 2010 was about 75 less than 2009.
- If you look at 2010, in 9 out of 12 months, 400-500 homes sold each month. But the number of homes for sale varied from July’s high of 3400+ to December’s low of 2499.
Best odds of selling: East Bellevue/Redmond areas around Microsoft.
Worst odds of selling: West Bellevue and downtown Redmond and Carnation.
Biggest increase in sales from last year: East Bellevue/Redmond near Microsoft.
Smallest increase in sales from last year: Downtown Redmond and Carnation.
Decline in home sales from last year: Two out of the 7 Seattle-eastside areas had fewer sales, West Bellevue and Sammamish/Issaquah/North Bend/ Fall City.
The peak of homes for sale in 2008: July, 4370 homes.
The peak of homes for sale in 2009: June, 3859 homes.
The peak of homes for sale in 2010: August, 3492 homes.
The number of eastside homes for sale at the start of 2010: 2588 homes.
The number of eastside homes for sale in December, 2010: 2499 homes.
How Was The Seattle Eastside Real Estate Market in November, 2010?
Are Seattle-eastside home sales going “merrily” along? Merrily may be an extreme word to use in this case to describe Seattle-eastside real estate, however, it’s good news to see in 5 of the 7 eastside areas, there were more home sales this November than last. In some areas, there was a huge increase in the number of homes sold when compared to last year.
The odds of selling a home on the Eastside in November ranged from 15% to 23%, with an average 17% absorption rate.* Most home sellers on Seattle’s eastside had a 17/100 change of selling their home last month.
*(The absorption rate is the number of homes for sale in any given month divided by the actual number of homes sold that month. If the absorption rate is 10%, then 10 out of the 100 homes for sale sold that month.)
November, 2010 2818 homes for sale 485 homes sold 17% odds of selling.
October, 2010 3267 homes for sale 477(was 519) homes sold 15% (was 16%) odds of selling.*
September, 2010 3487 homes for sale 422 homes sold 12% odds of selling.*
November, 2009 2943 homes for sale 431 homes sold 15% odds of selling.
*(Some home sales fail because of the buyer financing or an inspection. The number of sales is updated when we find out the actual number of homes that sold during that time.)
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November, 2009 Seattle-Eastside real estate market compared to November, 2010:
- The average price of pending homes (recently sold homes) went from $612,955 to $532,907.
- As of this past week, there were 11,519 King County homes (houses and condos) for sale, there are about 3000 less homes for sale in King County now than in July.
- The number of homes sold on Seattle’s Eastside: down 15% from last year.
- Number of homes for sale on Seattle’s Eastside: About 450 fewer homes for sale than in October, 669 less than in September and 125 less than November of 2009.
- If you look at all 4 months worth of sales above, you can see the number of homes sold does not vary as much as the number of homes for sale. Each month, between 422-485 homes sold. Whereas the number of homes for sale varied by as much as 600 homes.
Best odds of selling: South Bellevue/Issaquah, and East Bellevue/Redmond areas around Microsoft.
Worst odds of selling: West Bellevue and Woodinville/North Kirkland/Kenmore and Bothell.
Biggest increase in sales from last year: East Bellevue/Redmond near Microsoft.
Smallest increase in sales from last year: Kirkland, which had the highest increase in sales last month.
Decline in home sales from last year: There was a decline in 2 out of the 7 Seattle-eastside areas. Sammamish/Issaquah/North Bend/ Fall City had the largest decline in home sales.
The peak of homes for sale in 2008: July, 4370 homes.
The peak of homes for sale in 2009: June, 3859 homes.
The peak of homes for sale in 2010: August, 3492 homes.
The number of eastside homes for sale at the start of 2010: 2584 homes
The number of eastside homes for sale now: 2818 homes.
How are home sales going in your neighborhood? Do you see less “for sale” signs out there this past month?